Barraza v. Law Offices of Smith & Gopin

918 S.W.2d 608, 1996 WL 87503
CourtCourt of Appeals of Texas
DecidedMarch 27, 1996
Docket08-95-00090-CV
StatusPublished
Cited by13 cases

This text of 918 S.W.2d 608 (Barraza v. Law Offices of Smith & Gopin) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barraza v. Law Offices of Smith & Gopin, 918 S.W.2d 608, 1996 WL 87503 (Tex. Ct. App. 1996).

Opinion

OPINION

McCLURE, Justice.

Appellant Manuel J. Barraza, defendant in the underlying lawsuit, appeals from an adverse judgment of conversion arising from a bench trial. The trial court found that Bar-raza converted $6,000 belonging to plaintiffs Howard Hickman and the Law Offices of Smith and Gopin. The $6,000 represents the plaintiffs’ share of an $18,000 cheek made out to Barraza, Hickman, and a third party, Cecilia Flores. Barraza alleges in one point of error that we must reverse the judgment of the trial court because a necessary party, Flores, was absent from the proceedings. We affirm.

FACTUAL SUMMARY

Barraza has failed to timely file a statement of facts. The following is a summary of the trial court’s findings of fact which are not disputed on appeal by either party. On May 26, 1992, Cecilia Flores was involved in an automobile accident. On May 28, she visited the Law Offices of Smith and Gopin (“S & G”) and signed an employment contract which conveyed to S & G a one-third owner- *610 sMp interest in Flores’ claim for personal injuries arising out of the accident. Attorney Hickman, an employee of S & G, handled the lawsuit for Flores for approximately two weeks until Flores terminated S & G’s representation on June 10. The trial court found that Flores did not have good cause to terminate the contract, and that S & G retained its one-third interest in Flores’ claim. Without a statement of facts or the contract as an exhibit, we must assume that Flores’ contract with S & G entitled S & G to retain its ownership interest in Flores’ claim unless Flores could demonstrate “good cause” to terminate S & G’s services. 1 See Vasquez v. Vasquez, 645 S.W.2d 573, 575 (Tex.App.—El Paso 1982, writ ref'd n.r.e.) (in the absence of a statement of facts, findings of fact are binding on the parties and presumed justified by the evidence). After Flores terminated the contract, Attorney Barraza began representing her. Barraza negotiated an $18,000 settlement for Flores and the settlement check, issued December 31, 1992, was payable to Flores, Barraza, and Hickman. Although Barraza was aware of Flores’ contract with S & G, Barraza did not inform S & G or Hickman that he had settled the case, nor did he attempt to contact Hickman to secure Hickman’s endorsement on the check. 2 Barraza deposited the check in his escrow account with Hickman’s signature forged on it, dispersed two-thirds of the funds to Flores, and dispersed the remaining funds to himself. 3 The trial court concluded that S & G owned a one-third interest in Flores’ $18,000 personal injury recovery, and that one-third of Flores’ recovery equaled $6,000. The trial court found that Barraza had unlawfully and without authority assumed dominion and control over S & G’s share of the proceeds in the settlement check.

WAS FLORES A NECESSARY PARTY?

Barraza alleges in his sole point of error that we must reverse the judgment because a necessary party, Flores, was not made a party to the lawsuit. Tex.R.Civ.P. 39(a) states that:

A person who is subject to service of process shall be joined as a party in the action if (1) in his absence complete relief cannot be accorded among those already parties, or (2) he claims an interest relating to the subject of the action and is so situated that the disposition of the action in his absence may (i) as a practical matter impair or impede his ability to protect that interest or (ii) leave any of the persons already parties subject to a substantial risk of incurring double, multiple, or otherwise in *611 consistent obligations by reason of his claimed interest.

From the record before us, we cannot conclude that Flores’ position relative to this lawsuit meets either of the two standards.

Complete Relief Can Be Accorded

A party is necessary to litigation when, in his or her absence, complete relief cannot be accorded among those already parties. See Tex.R.Civ.P. 39(a)(1). Barraza alleges that his liability to Hickman and S & G hinges on the contract between Flores and S & G. Barraza argues that without Flores, the parties’ rights in the contract cannot be determined, and therefore, complete relief cannot be accorded. We disagree. Barraza’s liability derives from the settlement check itself, not from Flores’ contract with S & G. The settlement check was made in favor of three payees: Flores, Barraza, and Hickman, an employee of S & G. Hickman and S & G therefore had recognizable rights in an identifiable fund represented by the check. See Estate of Townes v. Townes, 867 S.W.2d 414, 419 (Tex.App.—Houston [14th Dist.] 1993, writ denied) (money subject to conversion when it can be described or identified as a specific chattel, and not where an indebtedness may be discharged by the payment of money generally). Thus, the funds represented by the settlement cheek were subject to conversion. Id. “Conversion” is the wrongful exercise of dominion and control over another’s property in denial of, or inconsistent with, his rights. George Thomas Homes, Inc. v. Southwest Tension Systems, Inc., 763 S.W.2d 797, 800 (Tex.App.—El Paso 1988, no writ). A plaintiff must prove that at the time of the conversion, he or she was the owner of the property, had legal possession of it, or was entitled to possession. Whitaker v. Bank of El Paso, 850 S.W.2d 757, 760 (Tex.App.—El Paso 1993, no writ).

Because this particular check had three payees, Hickman and S & G had to prove the extent to which they were entitled to possession of the check funds as opposed to the other two payees, and the extent to which Barraza interfered with their rights. See George Thomas Homes, 763 S.W.2d at 800; Whitaker, 850 S.W.2d at 760. The contract provided evidence of the extent of Hickman’s and S & G’s ownership interest in the check. With regard to Flores’ ownership interest, Barraza concedes that he disbursed two-thirds of the settlement proceeds to Flores, the amount to which she would have been entitled under the contract with S & G. Flores’ rights in the contract and in the settlement proceeds were satisfied when she received payment. Her contractual rights were not in dispute in this case. The record does not indicate that Hickman and S & G made any claim that Flores converted the funds she received, nor is there any evidence that they, or Barraza, disputed Flores’ entitlement to two-thirds of the funds pursuant to the contract. Indeed, the only issue before the court was whether Barraza or S & G was legally entitled to the remaining third of the check funds and Flores’ presence in the litigation was unnecessary to a determination of the respective rights of Barraza and S & G.

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Bluebook (online)
918 S.W.2d 608, 1996 WL 87503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barraza-v-law-offices-of-smith-gopin-texapp-1996.